[Federal Register Volume 64, Number 31 (Wednesday, February 17, 1999)] [Notices] [Pages 7890-7892] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-3758] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM Agency Information Collection Activities: Submission for OMB Review; Comment Request
Agency
Board of Governors of the Federal Reserve System (Board).
Action
Notice of information collections submitted to OMB for review and approval under Paperwork Reduction Act of 1995.
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Summary
In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (the ``agencies'') may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a currently valid Office of Management and Budget (OMB) control number. On November 19, 1998 the agencies requested public comments for 60 days on proposed revisions to the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002) and the extension, without revision, of the Report of Assets and Liabilities of Non-U.S. Branches that are Managed or Controlled by a U.S. Branch or Agency of a Foreign Bank (FFIEC 002s). Both reports are currently approved collections of information. The Federal Financial (Institutions Examination Council (FFIEC), of which the agencies are members, has given final approval to the proposed revisions. The Board is publishing the proposed revisions and extension on behalf of the agencies.
Dates
Comments must be submitted on or before March 19, 1999.
Addresses
Interested parties are invited to submit written comments to
the agency listed below. All comments, which should refer to the OMB control number, will be shared among the agencies. Written comments should be addressed to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551, or delivered to the Board's mail room between 8:45 a.m. and 5:15 p.m., and to the security control room outside of those hours. Both the mail room and the security control room are accessible from the courtyard entrance on 20th Street between Constitution Avenue and C Street, NW. Comments received may be inspected in room M-P-500 between 9:00 a.m. and 5:00 p.m., except as provided in section 261.12 of the Board's Rules Regarding Availability of Information, 12 CFR 261.12(a). A copy of the comments may also be submitted to the OMB desk officer for the Board: Alexander T. Hunt, Office of Information and Regulatory Affairs, Office of Management the Budget, New Executive Office Building, room 3208, Washington, DC 20503.
For Further Information Contact
A copy of the proposed revised collections of information may be requested from the Board's clearance officer whose name appears below. Mary M. West, Chief, Financial Reports Section, (202) 452-3829, Division of Research and Statistics, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551. Telecommunications Device for the Deaf (TDD) users may contact Diane Jenkins, (202) 452-3544, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, D.C. 20551.
Supplementary Information
Request for OMB approval to extend, with revision, of the following currently approved collections of information: Report Title: Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks. Form Number: FFIEC 002. OMB Number: 7100-0032. Frequency of Response: Quarterly. Affected Public: U.S. branches and agencies of foreign banks. Estimated Number of Respondents: 506. Estimated Total Annual Responses: 2,024. Estimated Time per Response: 23.15 burden hours. Estimated Total Annual Burden: 46,856 burden hours. General Description of Report: This information collection is mandatory: 12 U.S.C. 3105(b)(2), 1817(a)(1) and (3), and 3102(b). Except for select sensitive items, this information collection is not given confidential treatment (5 U.S.C. 552(b)(8)). Small businesses (that is, small U.S. branches and agencies of foreign banks) are affected. Abstract: On a quarterly basis, all U.S. branches and agencies of foreign banks (U.S. branches) are required to file detailed schedules of assets and liabilities in the form of a condition report and a variety of supporting schedules. This balance sheet information is used to fulfill the supervisory and regulatory requirements of the International Banking Act of 1978. The data are also used to augment the bank credit, loan, and deposit information needed for monetary policy and other public policy purposes. The Federal Reserve System collects and processes this report on behalf of all three agencies. Current Actions: The agencies propose to revise the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002) effective March 31, 1999, by: deleting the existing memorandum items for the amortized cost and fair value of high-risk mortgage securities; revising the instructions to conform with the American Institute of Certified Public Accountants Statement of Position (SOP) 98-1, including a new Glossary entry for ``internal-use computer software'' that summarizes SOP 98-1; and clarifying the Glossary and other reporting instructions for unsuitable investment practices, re-booking of charged-off loans, and consolidation of subsidiaries. The Board did not receive any comments in response to the notice published in the Federal Register on November 19, 1998, (63 FR 64258) requesting comment on the proposed revisions to the FFIEC 002 for 1999. Summary of the Revisions to the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002): The revisions to the FFIEC 002 Report listed below have been approved by the FFIEC. The agencies will implement these changes as of the March 31, 1999, report date.
Deletion
(1) In Schedule RAL--Assets and Liabilities, Memorandum items 5 and 6 for the fair value and amortized cost of ``High-risk mortgage securities'' will be deleted.
Instructional Changes
(1) The instructions will be revised to conform with AICPA Statement of Position 98-1, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use. (2) A new entry will be added to the Glossary section of the instructions discussing the reporting of securities activities, including descriptions of certain trading practices. These practices were previously discussed in the agencies' 1992 Supervisory Policy Statement on Securities Activities, which was replaced in April 1998 by a revised policy statement on investment securities that does not address these reporting issues. (3) The Glossary entry for ``Assets Classified Loss'' will be revised to indicate that the cost basis of a loan or lease that has been reduced through a direct write-down may not be increased at a later date by reversing the previous write-down.
Other Revisions
(1) Consolidation of Subsidiaries: Some U.S. branches have requested that the FFIEC clarify whether subsidiaries of U.S. branches should be consolidated in the FFIEC 002. Consistent with U.S. generally accepted accounting principles (GAAP) subsidiaries that are controlled by a U.S. branch should be consolidated in the FFIEC 002. Accordingly, the general instructions will be revised to indicate that, consistent with GAAP, a U.S. branch should consolidate all entities in which it maintains a controlling financial ownership interest, e.g., a direct or indirect ownership interest of more than 50 percent of an entity's outstanding voting shares.
Supplementary Information
Proposal to approve under OMB delegated authority the extension for three years, without revision, of the following reports: Report Title: Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled by a U.S. Branch of Agency of a Foreign (Non-U.S.) Bank. Form Number: FFIEC 002S. OMB Number: 7100-0273. Frequency of Response: Quarterly. Affected Public: U.S. branches and agencies of foreign banks. Estimated Number of Respondents: 114. Estimated Total Annual Responses: 456. Estimated Time per Response: 6 burden hours. Estimated Total Annual Burden: 2,736 burden hours.. General Description of Report: This information collection is mandatory: 12 U.S.C. 3105(b)(2), 1817(a)(1) and (3), and 3102(b) and is given confidential treatment (5 U.S.C. 552(b)(8)). Small businesses are not affected.
Abstract: On a quarterly basis, all U.S. branches and agencies of foreign banks are required to file detailed schedules of their assets and liabilities in the form FFIEC 002. The FFIEC 002S is a separate supplement to the FFIEC 002 that collects information on assets and liabilities of any non-U.S. branch that is ``managed or controlled'' by a U.S. branch or agency of the foreign bank. Managed or controlled means that a majority of the responsibility for business decisions, including but not limited to decisions with regard to lending or asset management or funding or liability management, or the responsibility for recordkeeping in respect of assets or liabilities for that foreign branch resides at the U.S. branch or agency. A separate FFIEC 002S must be completed for each managed or controlled non-U.S. branch. The FFIEC 002S must be filed quarterly along with the U.S. branch's or agency's FFIEC 002. The data are used: (1) to monitor deposit and credit transactions of U.S. residents; (2) for monitoring the impact of policy changes; (3) for analyzing structural issues concerning foreign bank activity in U.S. markets; (4) for understanding flows of banking funds and indebtedness of developing countries in connection with data collected by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) that are used in economic analysis; and (5) to provide information to assist in the supervision of U.S. offices of foreign banks, which often are managed jointly with these branches. Current Actions: The proposal to extend for three years, without revision, the Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S) that is the subject of this notice has been approved by the FFIEC. The Board did not receive any letters of comment in response to the notice published in the Federal Register on November 19, 1998, requesting comment on the proposal to extend the FFIEC 002S for three years.
Request for Comments Regarding the FFIEC 002 and FFIEC 002S
Comments submitted in response to this Notice will be shared among the agencies. All comments will become a matter of public record. Written comments should address the accuracy of the burden estimates and ways to minimize burden as well as other relevant aspects of the information collection requests. Comments are invited on: (1) Whether the proposed revisions to the FFIEC 002 and the extension of the FFIEC 002S collections of information are necessary for the proper performance of the agencies' functions, including whether the information has practical utility; (2) The accuracy of the agencies' estimates of the burden of the information collections, including the validity of the methodology and assumptions used; (3) Ways to enhance the quality, utility, and clarity of the information to be collected; (4) Ways to minimize the burden of information collections on respondents, including through the use of automated collection techniques or other forms of information technology; and (5) Estimates of capital or start up costs and costs of operation, maintenance, and purchase of services to provide information.
Board of Governors of the Federal Reserve System, February 10, 1999. Robert deV. Frierson, Associate Secretary of the Board. [FR Doc. 99-3758 Filed 2-16-99; 8:45 am] BILLING CODE 6210-01-M